Humana now anticipates earnings of about $8.80 per share on a GAAP basis and about $9.50 on an adjusted basis for the year ending Dec. 31, or $0.25 per share above its previous guidance.

The company said that a decline in memberships in its 4-Star plans does not take into account certain operational actions it intends to take over the coming quarters to mitigate any potential impact of published ratings on Star bonus revenues for 2018.

Medicare uses a Star rating system to measure how well Medicare Advantage and prescription drug plans perform. Medicare scores are based on several categories including quality of care and customer service. Ratings range from 1 to 5 stars, with five being the highest and one being the lowest score.

Humana said it intends to file for reconsideration of certain of Star ratings for the 2018 bonus year. (Reporting by Ankur Banerjee in Bengaluru)